Hi,

I'd like to quickly share with you some of my thoughts that were provoked by this weekends' decline in BTC/LTC and many other cryptocurrencies. I've pasted this message from my theSolution Land Fund thread at litecointalk.org (https://litecointalk.org/index.php?topic=21194.45)

As Forex is my background and I'm trading actively, I cannot pass over the fact of correlation between the price of pairs BTC/USD and similar Forex major pairs, namely EUR/USD, GBP/USD. I know that I'm not discovering something new, but not all of the investors are aware of that. If USD is getting stronger across the board, this will result in other currencies losing value against USD, hence a decline in price. BTC and other cryptocurrencies manifest the same behavior. Please look at the following charts of EUR/USD and BTC/USD presenting what has happened on last Friday ( 3rd of October). At 14:30 CET (I'm using my timezone) there was a publication of US economic data, the Non Farm Payrolls or Non Farm Employment Change, along with some other data ( http://www.forexfactory.com/index.php?day=oct3.2014):

The data caused a strong market reaction, contributing to USD strength:

http://s28.postimg.org/sqsm2toal/eurusd_btcusd.jpg

This strength sent BTC and other cryptocurrencies tumbling, and the slide continues over the weekend, as many cryptocurrencies holders are in panic selling mode. The sentiment wasn't favourable to BTC and this Friday's economic data and market reaction isn't helping as well.

There are other factors contributing to this fall in prices, e.g. wider adoption of BTC as a payment method among businesses who instantly sell the BTC to get their profits in fiat. Another factors can be seen within the cryptocurrency sphere (Butterfly Labs problems, Russia's upcoming ban?), but this post is intended to shift your attention towards the wider view on currencies.

Kind regard,
Piotr